NOTES TO THE FINANCIAL STATEMENTS CONTINUED S S 28 ADDITIONAL CASH FLOW INFORMATION CONTINUED TR29 SHARE-BASED PAYMENTS CONTINUED TR Reconciliation of movements of select liabilities to cash flows arising from financing activities continued ALong-term incentive schemes continued A TE The following table details the outstanding options under the LTIP schemes: TE Other borrowings G G I I and inventory Lease $1,184.0m 10.5% $335m 15% C C arrangements Liabilities First Lien Notes Second Lien Notes Total R 2023 2022 R Liabilities £m £m £m £m £m Number Number E E P Options outstanding at 1 January 5,267,164 1,019,892 P O O At 1 January 2022 134.0 103.4 852.5 222.4 1,312.3 R R T Granted 8,329,424 2,177,076 T Changes from financing cash flows Interest paid (4.6) (4.5) (96.3) (35.8) (141.2) Forfeited (499,228) (139,533) Adjustment for rights issue – 1,930,663 G G Principal lease payment – (10.0) – – (10.0) O Lapsed due to non-attainment of conditions (413,234) – O Repayment of existing borrowings (7.8) – (36.1) (128.8) (172.7) VEOptions outstanding at 31 December 12,684,126 5,267,164 VE Premium paid on the early redemption of Senior Secured Notes – – – (14.3) (14.3) R R Inventory repurchase repayment (60.0) – – – (60.0) NANFree employee shares NAN On 19 May 2023, all UK employees of the Group were awarded up to 425 free shares in the Company under a Share Incentive Plan. A total of 1,017,505 Inventory repurchase drawdown 75.7 – – – 75.7 C C Transaction costs paid – – (1.9) – (1.9) Eshares were issued to the Aston Martin Employee Share Trust and immediately vested (see note 26). Employees must remain employed for a period of E three years to earn the shares, otherwise they are forfeited. Employees within the Group not domiciled in the UK were awarded 425 free options under the Total changes from financing cash flows 3.3 (14.5) (134.3) (178.9) (324.4) LTIP rules. A total of 57,322 options were granted to these employees. Provided those employees remain employed by the Company for three years, the F F Effect of changes in exchange rates – 0.7 113.5 42.7 156.9 I I New leases under IFRS 16 – 2.2 – – 2.2 NANnil-cost options will vest with no other performance conditions. NAN C The following table details the outstanding shares under both the UK and non-UK scheme combined: C Modifications to existing leases – 3.5 – – 3.5 IAL 2023 2022 IAL S S Interest expense 12.3 4.5 103.5 82.8 203.1 Number Number Movement in accrued interest 0.9 – (0.2) – 0.7 T T A Awards/options outstanding at 1 January – – A T T Financing expense in the Income Statement classified as operating cash flow (5.2) – – – (5.2) E E M Granted 1,074,827 – M E E Balance at 31 December 2022 145.3 99.8 935.0 169.0 1,349.1 N Forfeited (50,411) – N T T S Awards/options outstanding at 31 December 1,024,416 – S 29 SHARE-BASED PAYMENTS F Other share-based payments F Long-term incentive schemes U U R On 31 January 2022, the Group’s Defined Benefit Pension Scheme was closed to future accrual. As part of the closure cost, the affected employees were R On 24 May 2023, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive Plan T T H each granted 185 shares incurring a share-based payment charge of £1.0m during the year ended 31 December 2022. A cash-settled share-based payment H (“2023 LTIP”). On 12 December 2023, additional employees were granted conditional share awards under an extension to the same plan. The total charge E E R charge is also recognised associated with the guaranteed future value of the shares awarded to the employees (note 5). In the year ended 31 December R recognised in the Consolidated Income Statement in relation to this scheme was £3.4m (2022: £nil). INF2023, a total charge of £1.0m (2022: £1.0m) was recognised in the Consolidated Income Statement. INF On 13 and 14 June 2022, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term OROn 8 November 2022, a Group Director was granted 659,113 shares for nil consideration in relation to forfeited awards at a previous employer and OR Incentive Plan (“2022 LTIP”). On 15 December 2022, additional employees were granted conditional share awards under an extension to the same plan. The Mtherefore securing his employment with the Group. The award is subject to clawback provisions for a period of 12 months from the award date. The total M A A total charge recognised in the Consolidated Income Statement in relation to this scheme was £1.6m (2022: £0.9m). T T I cost incurred related to this award was £0.8m. I On 14 June 2021, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive Plan ON ON The total expense arising from equity-settled share-based payments is as follows: (“2021 LTIP”). On 14 December 2021, additional employees were granted conditional share awards under an extension to the same plan. The total charge recognised in the Consolidated Income Statement in relation to this scheme was £nil (2022: £0.4m). 2023 2022 £m £m Awards made under the 2020 LTIP lapsed during the year as the remaining qualifying criteria were not met. 2023 LTIP share option charge 3.4 – The fair value of equity-settled share options and share awards granted is estimated at the date of grant using share option valuation models. The schemes 2022 LTIP share option charge 1.6 0.9 are valued using the Monte Carlo model. 2021 LTIP share option charge – 0.5 The following tables list the inputs to the models for share based payment costs in the year: 2020 LTIP share option credit – (1.4) Grant of shares upon closure of the Defined Benefit Pension Scheme (notes 5, 26) – 1.0 2023 grant 2022 grant 2021 grant Group Director buyout – 0.8 of 2023 LTIP of 2022 LTIP of 2021 LTIP Aggregate fair value at measurement date (£m) 18.6 6.1 7.3 Employee Share Incentive Plan 0.4 – Exercise price (p) £nil £nil £nil 5.4 1.8 Expected volatility (%) 70.0% 50.0% 50.0% Dividend yield (%) N/A N/A N/A Risk free interest rate (%) 4.25% 2.16% 0.15% The expected volatility is wholly based on the historical volatility of the Company’s share price over a period from listing in 2018 to date. ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 193